Evaluation ERP II Application Performance from Institutional Theory View

Abstract

ERP II system is embedded rules and norms from preexisting institutions that serve to both legitimate and facilitate inter-organization isomorphic structure. There is paradox of ERP II investment evaluation based on ROI and TCO metrics. The role of ERP II system in legitimating business practice as being in conformity with accepted norms and conventions has been increasingly recognized by CXFs(CEOs, CFOs, COOs, CIOs). ERPII system may also play a significant role in establishing and perpetuating inter-enterprise structure of institutions. The purpose of this paper is to provide ERP II evaluation from institutional view. This paper argues hypotheses about ERP II intangible performance from business legitimacy, reference of business model and business processes automorphism between business actors. Institutional view can be used to ERP II software requirement analysis and system design as well ERP II promotion for ERP II vendors.